Professional Clearence Requests

Professional Clearence Requests

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Unfortunately we do lose some clients, such is life and they decide to move on, luckily we have always remained on good terms. When we write requesting professional clearence we normally expect an answer in three weeks ish but most of the time it is quicker, some slightly longer. We tend to reply within 14 days with all the information requested.

We did lose a client recently and duly received the PC request. Due to holiday, sickness etc. we didn't respond in seven days - at which point we received a letter threatening to report us to the Institute (as a member firm). We responded granting PC and said the information would follow in the next two weeks but have been told this is an inappropriate amount of time etc. etc.

There are no impending deadlines for the client, the next being a VAT return due in 9 weeks! I think the accountant is being unreasonable and is copying in the client to all the requests being very condecending. Whilst so far I have refrained from replying in the same manner my patience is being pushed!

How long do you expect to wait for PC and how quickly do you respond?

Replies (10)

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By Moonbeam
11th Sep 2012 11:56

Your response time sounds very reasonable

At this time of year some people go on holiday - particularly since schools are now back. It is not unusual for many people I know to take 2 weeks.

In your situation I would ignore the new accountant until day 14 of your 2 week deadline when I would send them the stuff in formal style with no reference to their unpleasantness. You could act as if you hadn't even read their unpleasant words.

You are clearly concerned about how your ex client will view this. So at the same time as giving the rest of the data to the new accountant why not write a nice friendly letter to the client telling them you've now given over all the information and wish ex client all the best, sad to see them go, but they can always come back if things aren't to their liking? I know another accountant whose ex clients have sometimes come back, mainly because he's such a nice person.

Let's face it, new accountant is probably just as unpleasant and bullying to clients as he has been to you, so client may be very glad to give you a call in due course. Might be an idea to keep client on Xmas card list.

I don't know about your professional body, but would assume they've got more interesting things to do than check out this sort of complaint. Maybe it wasn't ever made anyway.

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By Jekyll and Hyde
11th Sep 2012 13:58

I agree with the above.

We all like to get the PC clearance back quickly so we can sign the client up, get 64-8's and LOE's dealt with and secure that so called deal. I always sent a signed letter from the client authorising me to act. At the initial meeting with clients I inform them that it can take up to 4 weeks for the procedure to complete an explain some reasons why this is. I never take on a client in January for this exact reason or when there is an urgent need to do a piece of work, I personally hate January clients! . I explain to the client that as I cannot guarantee the PC being dealt with swiftly (ie the accountant will be more interested in their existing clients than a client that is leaving).

I would never chase for at least 2 weeks, at which point I would give a friendly phonecall asking whether the accountant had received my clearance letter and authorisation. If I get no positive response at this point (ie. Yes we did, it will be done by end of next week) I will chase up with another letter. I then give a further 2 weeks, afterwhich I have no choice but to assume there are no professional reasons. There are some accountants that do not reply to personal tax clients PC at all.

On a receiving side of PC, If the PC letter does not come with a letter of authority to release signed by the client, then I simply write back to the accountant and ask him to get the client to confirm authority to act in writing. As the PC letter very rarely comes with this authority letter, I also tend to send this initial response ASAP and chase up with a telephone call (sometimes the accountant is happy with this and sometimes not. I haven't done many PC letters, but it is a 50/50 response. Those that don't like it, I inform them of the Data protection act and releasing personal data and also client confidentiallity. Better safe than sorry).

As there are no looming deadlines, I suspect the new accountant has spare capacity and needs to do this job ASAP for working capital and practice reasons only. If it is because the client needs the accounts ASAP, well the accountant should have considered this before now!

 

 

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Me!
By nigelburge
11th Sep 2012 14:28

How long do you expect to wait for PC and how quickly do you res

I usually respond within a few days but if holidays/away audits loom large then it might be as long as a week.

I certainly wouldn't chase for at least two weeks, probably three - some accts never ever respond and you can usually spot those from the start. If the old acct is slow to respond, I often get the client to chase them instead - that works wonders and just cements his opinion as to why he is leaving them.

The response to you was just plain rude, bad mannered and unprofessional. I hope your ex-client knows what he is getting!

As to threatening to report you after a week, the only word for that is childish.

My sympathies are with you. Although you probably agreed with all of the above once you opened their letter, it does leave a very nasty taste in the mouth.

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By twj4789
11th Sep 2012 15:14

Thanks for your responses, I was worried that perhaps we were responding too slowly. I don't think we actually did have a complaint filed and agree that the institute would be unlikely to do anything.

I will be spending tomorrow morning colating the information requested and sending it off with a very polite letter and as per the suggestion above write to the ex-client as well.

These situations are difficult, we are still owed some money from the client but we will get paid and have no issues with that. It would be easier for us to change our mind and with-hold information pending payment but that will only affect the client and their perception of us!

Anyway thanks again for the responses!

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By eastangliantaxadvisor
11th Sep 2012 16:53

It depends upon which Govering Body you are under, but there are no time limits as far as I know in any.

 

The ICAEW guidance says "answer promplty"!

 

 

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By Steve Holloway
11th Sep 2012 17:54

Within a couple of days...

.... I am a zero in-tray type of person though so I tend to deal with any correspondence the day after it arrives before I start proper work that morning. I also don't usually have more than 1 or 2 emails awaiting response at any time. To be honest it is the only way I could work nowadays as my attitude to juggling has become more conservative with age!

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By Midlands Accountancy
11th Sep 2012 18:45

What's an "In tray" ?

Like Steve Holloway I like to get rid of letters / emails as soon as I can.  When I open my post I either answer it,straight away, or file it in the bin. That way I've never got more than one or two letters requiring more substantial replies to deal with.

Professional clearance requests are usually dealt with by a quick telephone call then whatever copies etc have been requested sent in the post within a day or two.  As far as I'm concerned once a client becomes an ex client the sooner he's handed over the sooner he's no longer my problem.

 

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By Ken Howard
12th Sep 2012 09:42

Immediate reply

I will deal with such a request from a new accountant straight away.  If there is no authority letter from the client, then I'd fax/post a form for them to sign and then reply to the new acctnt as soon as the signed form was received.  Under 7 day turnaround would be fairly usual for me.

As for getting clearance from other acctnts, I've been pleasantly surprised over the past year or two as they've generally been very quick - a week or two does seem to be the norm these days.  One man bands and the internet/national firms seem to be quickest, often replying by email with all documents as attachments that can come within a day or two.

The slower ones seem to be the more traditional town centre practices.  My worst was from a long established 2 partner chartered town centre practice where it took over six months to get any kind of reply and then a further few months to get proper analyses etc.

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Locutus of Borg
By Locutus
12th Sep 2012 10:58

Unprofessional
I think it is very unprofessional of the new accountant to be acting the way they have after only a few days. Although I have always tried to deal with clearance letters within the week, I think a response within a month is acceptable, provided there are no impending deadlines.

If you said the information will follow within 2 weeks then stick to that. Don't be bullied by idiots.

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By doorsteps
25th Oct 2012 12:37

I assume the professional guidelines are such that you should not file any papers with HMRC such as the 64-8 until you get clearance from the old Accountant ?

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